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March 2012

Microfinance, RCTs and the big picture, look up your grandparents, and more...

David McKenzie's picture
Water investments are lumpy and costly: financing is essential to spread the costs of these investments out over time. For water, development finance institutions still provide the bulk of such financing. It can no longer be the only one, however. The costs of extending universal access to safe water and sanitation has been estimated at US$ 114bn per year, which is a substantial increase compared to what was invested to reach the Millenium Development Goals. In contrast, in 2014 total official development finance for water, including grants and loans with varying degrees of concessionality, reached a mere US$18 bn per year, three times more than in 2003 but still woefully insufficient to meet all investment needs.

To meet the Sustainable Development Goals, governments will need to better target their investments and leverage more financing from private sources, including from households that can afford it (via more realistic and fair tariff policies and incentives to invest in things like toilets) and from commercial finance providers, including microfinance institutions, commercial banks, bond investors or venture capitalists.

A this year’s Stockholm World Water Week, the World Bank is releasing  a report which provides guidance to governments and private financiers on “Easing the Transition to Commercial Finance for Sustainable Water and Sanitation”. This report brings together strands of analysis and key messages that were developed for the High Level Panel on Water and for the Sanitation and Water for All Partnership in the run-up to the 2017 High Level Ministerial Meetings hosted by the World Bank.
Download Easing the Transition to Commercial Finance
for Sustainable Water and Sanitation

Learn more about the session Private Finance and
Equitable Delivery of WASH services
 at World Water Week.  

Migration and Trade Go Hand in Hand for Africa and the US

Sonia Plaza's picture

Source: Kamel Cakici - Monde arabe : Les citoyens veulent des services sociaux de meilleure qualité, pas uniquement des subventions

« Vaincre la pauvreté n’est pas un acte de charité… la pauvreté n’a rien de naturel. Créée par l’homme, elle peut être éradiquée par l’homme. » Bien des années après que Nelson Mandela a prononcé ces paroles, celles-ci résonnent toujours en nous et orientent notre travail sur la protection sociale des pauvres dans le monde arabe, où coexistent une classe moyenne toujours plus nombreuse et des individus en situation de grave pauvreté.

Together Much is Possible – A New GHG Emissions Protocol for Cities

Dan Hoornweg's picture

Morocco. Photo credit: © Curt Carnemark/World Bank

At a Program of Seminars session Monday on “Greening Recovery, Seizing Opportunities,” more than 300 people turned out to hear experts such as Nobel laureate Joe Stiglitz and UNEP Executive Director Achim Steiner outline how “green” investments are being used as parts of economic stimulus packages.

They were joined by Luciano Coutinho (President, BNDES – Brazilian Development Bank), Yoon-Dae Euh (Chairman, Korean Presidential Council on Nation Branding and Chairman, Steering Committee, Korean Investment Corporation), and Hasan Zuhuri Sarikaya (Undersecretary, Ministry of Environment and Forestry, Turkey).

For Stiglitz, the principal question now in responding to the financial and economic crisis is how to increase global aggregate demand. Instead of increasing consumption, he said, more funding should go to increase investment – particularly green investment.

Behind lunch choice and moral decisions: the link between attention and behavior

Jed Friedman's picture
The former Yugoslavia was mainly known for its not-so-successful and cheap cars, primarily the Yugo. In its review of the 50 worst cars of all time, Time magazine referred to the Yugo GV as the “Mona Lisa of bad cars.”

Nevertheless, the car industry played an important role in the economic development of the socialist Yugoslavia, representing a big employer across all former Yugoslav republics. The onset of war in the early 1990s dealt a significant blow to the car industry there, with most the production facilities closing down by the end of that decade.

And then, in the early 2000s, car companies began opening new facilities in the immediate neighborhood (Hungary, Romania, Slovakia, Slovenia) and the region began producing world renowned brands such as Audi, Mercedes Benz, Renault, and Suzuki. This represented a new opportunity for manufacturers from the region to enter new supply chains - relying on skilled and experienced labor. On top of this, FIAT also opened a new factory in Serbia, further spurring demand for locally produced automotive parts.
 

Whose anecdote will it be this time?

Gero Carletto's picture

Some public-private partnerships (PPPs) fail. That’s a fact. But when the lessons these failures impart are integrated into future projects, missteps have the potential to innovate — energizing the learning cycle and setting the stage for long-term success. To gain a better understanding of how innovation in PPPs builds on genuine learning, we reached out to PPP infrastructure experts around the world, posing the same question to each. Their honest answers redefine what works — and provide new insights into the PPP process.

This is the question we posed: How can mistakes be absorbed into the learning process, and when can failure function as a step toward a PPP’s long-term success?

Our first response in this eight-part series comes from the International Monetary Fund's Isabel Rial.

For centuries, PPPs have been used by governments as an alternative to traditional public procurement for the provision of public infrastructure, although results have been mixed. If properly managed, PPPs can deliver substantial benefits in terms of mobilizing private financial resources and know-how, promoting efficient use of public funds and improving service quality.

Yet in practice, PPPs have not always performed better than traditional public provision of infrastructure. The reasons for this vary across countries.

Exporting is easy; the challenge is making it sustainable

In 2009, an EU-based chemical manufacturer opened a plant inside one of FYR Macedonia’s recently-established special economic zones. The plant began production of catalysts, a type of emissions-control component used in automobiles. Two years later, this investment drove chemical products to the third-highest spot on Macedonia’s export list, lessening the country’s reliance on metals and textiles.

In Nicaragua, low labor costs and high security compared to its neighbors have led zonas francas to expand dramatically, attracting producers of electronic wires and medical devices and expanding the country’s exports beyond an already-strong apparel sector. Between 2006 and 2008, for example, ignition wiring sets for vehicles were the country’s fourth biggest export.

These two examples demonstrate a new trend in small economies. Increasingly, as global value chains grow in importance,

Will financial disclosure by public officials mean less corruption?

Financial disclosure systems are attracting increasing attention. Can these systems credibly help to prevent corruption in public office? Can they play a useful role in detecting officials who engage in corrupt behaviors? Could they even assist in the complex global work of tracking and investigating illicit flows?

Credit: Perry French, Flickr Creative CommonsThe recently released  Public Office, Private Interests from the Stolen Asset Recovery (StAR) Initiative with data by the Public Accountability Mechanisms Initiative of the World Bank provides a practical approach to addressing the challenges and requirements of effective disclosure administration.  The overarching message is that effective disclosure is a balancing act. Yes, a disclosure system can make a meaningful contribution to corruption prevention and enforcement. But cannot do so if expected to tackle and apply sanctions for all forms of graft and corruption in public administration.

Requiring that public officials submit a signed declaration of their income, assets and business interests is on the face of it an intuitively simple way of ensuring that they think twice about seeking to profit illicitly from their public duties, or of allowing private interests to influence, appear to influence, or otherwise conflict with their official responsibilities. Fear of detection is the motivating force; a reminder of ethical obligations, and assistance in fulfilling them, the encouragement. In practice, however, this deceptively straightforward idea is very challenging to implement. 

Effects of Licensing Reform on Firm Innovation

Murat Seker's picture
will it ever end? five years of the World Bank's EduTech blog
will it ever end? five years of the World Bank's EduTech blog

2013 marked the fifth year of the World Bank's EduTech blog, which has been dedicated to "exploring issues related to the use of information and communications technologies (ICTs) to benefit education in developing countries". The posts in 2013 spanned a rather eclectic set of topics and issues, from MOOCs to mobile phones to Matthew Effects (and those are just the 'M's!). Viewed collectively, it is hoped that these posts provide a little insight into the variety of discussions and activities in which the World Bank has been engaged over the past year, assisting policymakers and practitioners in middle and low income countries as they investigate how new technologies can help education systems tackle long-standing challenges in new (and sometimes not-so-new) ways.

As in past years, in 2013 the EduTech blog served various purposes, but has remained at its core driven by a belief that by 'thinking aloud in public', we can try (in an admittedly very modest way) to use the blog to open up conversations about various themes to wider audiences, and to share emerging thinking and discussions on topics that in the past were often (regrettably) shared only 'behind closed doors' within small circles of people and institutions. There were fewer (27) posts over the course of the year, but many of them were much longer (some may argue that many of them were in fact too long, and indeed a number of them served as first drafts of sorts for upcoming papers and book chapters).

Before presenting this year's 'top ten' list, some quick boilerplate reminders: Posts on the EduTech blog are not meant to be exhaustive in their consideration of a given topic, but rather to point to interesting developments and pose some related questions. They should not be mistaken for peer-reviewed research or World Bank policy papers. The views expressed on the EduTech blog are those of the author(s) alone, and not those of the World Bank.

For those interested in such things:
 - More background and context on the World Bank's EduTech blog 
 - Top EduTech blog posts: 2012 - 2011 - 2010 - 2009
 - Annual EduTech blog compilations (in pdf): 2012 - 2011 - 2010 - 2009
 - A list of the top EduTech blog posts of all time can be found on this page

OK, now on to the ...
 

Citizens In Want of Stamina

Sina Odugbemi's picture

This is the age of hopeful citizens where in almost every part of the globe citizens are mobilizing, marching and, often successfully, pushing for change. But this is also the age of increasingly frustrated citizens. In some cases, the frustration is occasioned by the failure to achieve changes in regimes even after an astonishing sequence of heroic efforts and sacrifices by citizens. In other cases, the efforts originally appeared successful. Long-entrenched dictators fell and citizens were ecstatic, believing glorious days were imminent. Yet, in many of these cases, one disappointment is jumping on top of another. Change is proving far more difficult to achieve; it is even proving elusive.


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